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This paper presents costs for a coal log pipeline that can transport coal over distances from 50 km to 1500 km. The coal log pipeline (CLP) concept is a new technology in which coal is compacted into water impermeable circular cylinders that can be suspended in water flowing through an underground pipe. CLP includes processes to prepare the run-of-mine coal for compaction, the injection of coal logs into a pressurised water-filled pipeline, the conveyance of the coal through a pipe including special pumping stations, and the treatment of the coal logs and water at the pipeline outlet. An 8 inch (203 mm) pipeline can transport more than 2 Mt of coal per year.This paper presents costs for a coal log pipeline that can transport coal over distances from 50 km to 1500 km. The coal log pipeline (CLP) concept is a new technology in which coal is compacted into water impermeable circular cylinders that can be suspended in water flowing through an underground pipe. CLP includes processes to prepare the run-of-mine coal for compaction, the injection of coal logs into a pressurized water-filled pipeline, the conveyance of the coal through a pipe including special pumping stations, and the treatment of the coal logs and water at the pipeline outlet. An 8 inch (203 mm) pipeline can transport more than 2 Mt of coal per year. CLP components have been extensively tested in bench-scale facilities where these tests have included start up/shutdown steady state flow behaviour, end of pipeline treatment of water and coal log handling, water hammer effects, abrasion of logs and pipeline, coal log manufacture, and other engineering operations. Several sites are being considered in the United States (US) for the first commercial demonstration that will probably take place in 1998. The cost calculations are based on realistic values for all the components of a CLP, including a return on investment. For pipelines of different diameter, values for coal transportation are presented in terms of $(US)/tonne as a function of distance.